HOUSES: A crappy long-term investment. “Since 1987, when the Case-Shiller index of 10 major cities begins, it’s risen from an index value of 63 to 151. Annual return: Just 4.1% a year. During that period, according to the Bureau of Labor Statistics, consumer prices rose by 3% a year. Net result: Home prices produced a real return of just 1.15% a year over inflation over that time.” That’s certainly been my experience. I bought my first house going on 20 years ago, and over all those years I’ve never made much money.

But people around here are still asking ridiculous prices — I see houses bought in 2005 or 2006, at the peak of the market, offered at prices that assume 10% annual appreciation when in fact the owners should be thrilled to unload them for what they paid. That suggests to me that, as the article suggests, we’re a long way from market capitulation outside the big bubble markets.